Ukraine's finance ministry resumes sales of gov't bonds in foreign currency

In total, the ministry has borrowed UAH 2.826 billion (US$113.6 million) and US$547 million for the national budget at the planned auction to place government domestic loan bonds.

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The Ministry of Finance of Ukraine has resumed the sales of government domestic loan bonds in foreign currency for the first time in almost two months since on July 16, when the record high placement was recorded of bonds worth US$1 billion.

In total, the ministry has borrowed UAH 2.826 billion (US$113.6 million) and US$547 million for the national budget at the planned auction to place government domestic loan bonds, the ministry said on its website on Sept 10.

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In particular, hryvnia funds were raised through the placement of securities with 161-, 343-, and 847-day maturity periods and a weighted average yield of 16.15%, 15.52%, and 15.95% per annum, respectively.

The funds in U.S. dollars were raised through the placement of securities with 687- and 519-day maturity periods and a weighted average yield of 5.5% and 5.25% per annum.

The ministry says the sale of government bonds in foreign currency was resumed due to a significant demand for them from banks, primary dealers. It also noted a significant decrease in yield on both foreign currency and hryvnia bonds.

As reported, the hryvnia equivalent of the raised funds amounted to UAH 16.513 billion at the rate of the National Bank.

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As UNIAN reported earlier, the Finance Ministry borrowed UAH 166.6 billion (US$6.7 billion), US$3.2 billion, and EUR 189 million for the national budget at weekly bond placement auctions in January-July 2019.

Data for August have not been released yet.

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